UK - HM Treasury has released figures showing contributions paid by UK Government departments and employees to public sector pension schemes are £30bn less than the cost of the new benefits being earned.
John Ball, head of UK defined benefit consulting at Watson Wyatt, said: "The government might find it easier to hold down wages for public sector employees if it shouted from the rooftops about how valuable the other parts of their pay package are. One of the attractions of public sector pensions to employees is that they are guaranteed, and this security comes at a price.
"Like any other employer, the public sector can use a decent pension scheme to attract members of staff and stop the good ones from leaving. But it's hard to see how the taxpayer can get value for money if public sector employees are told their benefits cost less than the figure shown in the government accounts."
The consultancy said the cost of new benefits earned this year by members of the main unfunded public sector schemes was expected to be around £25bn - more than three times as much as the Treasury anticipates raising by abolishing the 10p tax band.
Meanwhile, Watson Wyatt said the cost of "interest" on public sector pension benefits built up in the past was forecast to reach £37bn this year on the Treasury's assumptions.
Philip Hammond, shadow chief secretary to the Treasury, added: "Public sector workers do important jobs, often under difficult circumstances, and they are entitled to security in retirement. But it's high time Gordon Brown came clean about the true cost of public sector pensions. This lack of transparency is just building up yet more problems for the future."
However, when Global Pensions spoke to a spokesman for the Treasury, he said the numbers were incorrect, as calculations did not subtract pensions currently in payment, which did not count towards the liabilities.
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